THE Bank of Namibia has stopped the minting of the 5-cent coin.
This is attributed to the low circulation of the coin as people continue accumulating them at home.
In a statement released yesterday, the central bank's deputy director of corporate communications, Kazembire Zemburuka, said the minting of the coin was discontinued as from 1 January 2019, but it will indefinitely remain legal tender in the country and be accepted as a way of payment at local retailers and businesses.
Due to the low circulation of the coin, he said: "This has resulted in unnecessary pressure being exerted on the N$0,05 cent coin denomination, given the current high withdrawal rate noted by the bank over the past few years. Additionally, the bank has noted that the handling costs for the five-cent coin have become exorbitant for commercial banks and retailers. Moreover, the five-cent coin has low purchasing power, compared to other denominations in terms of the amount of goods or services the coin can buy."
Zemburuka added that the bank urges retailers and businesses to apply the rounding principles of adjusting the final cash payment to the nearest 10 cent in favour of the customer, if the five-cent coins are not readily available.
"In the meantime, the bank shall continue supplying commercial banks with the five-cent coins, with the current stock that is expected to last until the end of August 2019. Thereafter, the availability thereof will be dependent on the re-circulation of the coins held by members of the public through local commercial banks, retailers and businesses," he said.